News

Thu, 4 Nov 2010

Electronic Portal: Employers Liability and Public Liability

In the next few weeks the review on compensation and health and safety legislation by Lord Young of Graffham is expected to be released by the Ministry of Justice. It is expected that Lord Young will support the Jackson review recommending that the electronic portal which is currently confined to road traffic accidents be extended to personal injury cases involving public and employers liability.

The road traffic accident electronic portal applies to claims of a value between £1,000 and £10,000. Previously, insurers had between 60 – 90 days to accept or deny liability for such claims but under this regime the time frame is reduced to just 15 days. The portal provides swift electronic exchange of all claim related information so that key decisions can be made quickly thereby reducing duplication and operational costs bringing cases to a conclusion more swiftly.

The Association of British Insurers has affirmed its support for an extension to the portal in so much that any method to expedite the claims process and address disproportionate legal charges would be welcomed. Whilst the Association of British Insurers' views resonate an undertone of common sense, it is unclear whether extending the portal to employer’s liability and public liability claims will be workable and/or whether it is really necessary.

There are significantly more claims pursued following road traffic accidents than any other type of claim and given the introduction of success fees there was clearly scope for unscrupulous lawyers to claim disproportionate and excessive legal costs against the paying party. Thus, it was not difficult to see the financial impact this would have on the insurance industry hence the introduction of the fixed costs regime and latterly the electronic portal.

Generally, liability in road traffic accidents is much easier to ascertain than employers or public liability cases. The classic and common example is the "rear end shunt" which, save for exceptional circumstances, ordinarily result in the driver behind being found liable.

It is factors like this that allow the electronic portal and fixed costs regime to work effectively. However, can the same be said for employer and public liability cases?

These cases tend to be much more multifarious requiring reference to numerous documents as well as health and safety legislation, not simply the Highway Code. Clearly, if the Ministry of Justice extends the electronic portal to employers and public liability claims then this would have to be very carefully structured and thought out so that such measures are not introduced at the expense of fairness and justice.